Technical analysis: key levels for gold and crude

Oil prices have stabilised after some weakness yesterday, while gold is aiming to recover some of the ground lost in yesterday’s swift move back down from near $1280.

Source: Bloomberg

Gold pulls back
We have seen a push to $1280 this week for gold, but yesterday saw a pullback. The risk is now that we see an unwind in the direction of the rising hourly trendline, back down towards $1220.

Any break above $1280 would put the commodity on course for $1300, the high from January of last year.

Brent looks to move down
A strong move higher over the past few days makes Brent ripe for some downward moves, or so it seems. A swift move back below $41 yesterday has seen a small move up overnight, but if it is unable to get back above $40, then a bigger move down to the 50-hour simple moving average at $37.68 could be in the offing. An even larger pullback would move back towards the rising daily trendline and support around $36.50. 

WTI remains above its trendline
Despite failing to push on above $38, the key resistance level from late December, WTI remains above its rising daily trendline. We will be watching this closely for signs of a break either above $38, or below $35.50. The former would then push the price on towards $42, the high from early December, while the latter raises the prospect of a move back to $34, key resistance at the end of January and during most of February. 


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